McLEAN, Va. – Long-term mortgage rates rose again this week, after falling the week before, according to Freddie Mac.
The average for the 30-year, fixed-rate loan climbed back up to 6.46% this week, after falling to 6.04% the week before; and the average for the 15-year, fixed-rate mortgage surged to 6.19%, from 5.72%.
ARM rates also moved sharply higher. The average for the five-year ARM rose to 6.36% this week, from 6.06% last week; while the average for the one-year ARM climbed to 5.38%, from 5.23%.
"Long-term mortgage rates followed long-term Treasury bond yields higher this week, pushing fixed-rate mortgages up to levels of two weeks ago," said Frank Nothaft, chief economist for Freddie Mac. "The Federal Reserve's 0.50 percentage-point cut in the discount rate and federal funds target rate on Wednesday was widely anticipated in the financial markets and is likely to keep short-term interest rates low; consequently, initial interest rates on ARMs, which tend to be set relative to other short-term rates, may remain near current levels
